Docutech Insights

Preparing for Electronic Mortgage Lending

Posted by Harry Gardner on Sep 20, 2016 9:00:00 AM

Preparing for Electronic Mortgage Lending 

Having been in the business of helping lenders on the path to paperless for a good portion of our 25 years of service, we have seen many management teams approach eMortgage. Because this territory is so new for many, some companies stumble or hold back when they are on the very cusp of updating their institutions for the future. Fortunately, today there are many great resources available for the lender who wants to prepare for and then enter the world of electronic mortgage lending.

 

Resources to help

Almost every lender knows of or has at least heard about the many benefits of going paperless. They understand the time and cost savings, the improvements to process flow and the compliance benefits. But too often they just don’t know enough to make the decision to move forward and they stall.

 

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Topics: Technology

What Happens when you Drive Loan Processes with Data

Posted by Justin Summers on Sep 13, 2016 9:00:00 AM

What Happens when you Drive Loan Processes with Data

The mortgage industry is a document-centric business; you can’t get around it. If they don’t have the right documents, financial institutions can’t sell loans into the secondary market. This is an exciting time, because that no longer means that documents have to be printed on paper. So in working toward that new electronic workflow, business should be no longer driven by the documents themselves, but rather the data contained in them.

 

Getting to data-driven documents

Initially, lenders created digital versions of the original paper documents lenders as they moved to adopt electronic documents. This was a great first step, but forced consumers to deal with static forms that are difficult to modify and caused time delays waiting on changes to be enacted. Data-driven documents, have dynamic data points that hold the required data for each individual loan.

 

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Topics: Technology

2016 ESRA Summer Meeting Recap

Posted by Harry Gardner on Aug 23, 2016 9:00:00 AM

2016 ESRA Summer Meeting Recap

With most conferences we attend, there are multiple speakers and comprehensive sessions spread out across several days; however, in the case of this year’s Electronic Signature & Records Association (ESRA) Summer Member Meeting, immersive sessions and speakers were jam packed into one in-depth day.

 

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Topics: Technology

Three Often Overlooked Things Every CIO Should Ask About Loan Document Software

Posted by Docutech on Aug 16, 2016 9:00:00 AM

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CIOs have a unique perspective on a financial institution’s technology investments. Operations and sales managers evaluate the impact a new tool might have on efficiency, cost savings or ease of use. The CIO and CTO, on the other hand, also need to ensure that the software works, is secure and can grow with the bank or lending institution.

When it comes to loan document preparation software, there are some specific areas every CIO is concerned with. Regardless of a specific institution’s needs, any loan document software should be able to answer four key questions:

1. Is it secure? Cybercrime is one of the biggest threats facing financial institutions today, and loan documents handle sensitive personal consumer data. One of the most important questions CIOs will ask is how the software ensures data security.

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Topics: Technology

Courts Laying the Foundation for Paperless Mortgages

Posted by David Aach on Jul 26, 2016 9:00:00 AM

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When it comes to paperless mortgages, lenders know what the advantages are – lower costs, more flexibility and a faster closing process. But despite the advantages ditching paper provides, widespread adoption of paperless mortgages has been extremely slow.

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Topics: Technology

Battle Royale: The Struggle Between SMART Docs and PDF Forms for Mass Acceptance

Posted by Harry Gardner on Jul 8, 2016 9:00:00 AM

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Do you remember Beta videotapes? How about 5.25-inch floppy disks? Eight-track tapes? Each of these technologies fell victim to a rival format – VHS, 3.5-inch floppies and cassette tapes – which in turn have all faded away as better technologies like DVD, CD-ROM and MP3 have become available.

 

The mortgage industry has a similar showdown looming. With lenders and investors rapidly adopting more electronic documents to better comply with TRID and save time and money, two eDocument formats have squared off.

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Topics: Technology

Moving from Static Forms to Dynamic Loan Documents

Posted by David Aach on Jun 7, 2016 9:00:00 AM

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In a previous post, we talked about the move away from paper loan documents and the concept of a form, which is basically a static document with spaces to hold specific data that must be manually changed. This migration away from forms and toward data driven loan documents is enabling great improvements in processing speed, customer satisfaction and the development and release of new loan products.

 

In the old days of static loan forms, complicated technologies were require to pull data out of the document for use in the lender’s processing system. In most cases, lenders were forced to scan a document into their systems and then count on specialized technology to pull the information out of the document image. There was a lot of X and Y coordinate measuring going on. If the loan document did not look exactly as expected, errors resulted. There was also no way to account for additional space. A long address, multiple buyers or complicated information could often not fit into the predefined space allowed for each field.

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Topics: Technology

MBA’s Secondary Market Conference Recap

Posted by Jake Butikofer on May 27, 2016 12:21:19 PM

 

Providing a recap for conferences such as these is always difficult because there is always so much valuable feedback from lenders and partners alike. However, some of the most talked about buzz topics this year were centered around better loan process workflow, which is always top of mind for lenders, and the borrower experience.

 

So far, borrower experience hasn’t been one of the major topics in the industry but is becoming more and more relevant as we move through 2016. Whether lenders are feeling pressure from new regulations or from borrowers themselves, this topic must be taken seriously if lenders want to stay at the forefront of potential customers.

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Topics: Technology

Get Rid of the Forms! Data Driven Events Smooth User’s Loan Experience

Posted by Docutech on May 24, 2016 9:00:00 AM

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In the early days of mortgage lending, the only way to ensure that the transaction would meet all of the state, federal and investor requirements was to use the right forms. Each type of loan came with a pre-defined stack of documents that would have to be completed in order to correctly process the transaction. As government regulators worked to make the process safer and more understandable to consumers, additional disclosure forms were added to the stack. Today, a typical loan file, containing all of the required forms, could be many inches thick.

 

As the industry has worked to get the paper out of our systems and adopted more electronic documents, lenders initially just created digital versions of the original paper documents and created electronic stacks that mirror in all respects the original loan documents from which they sprang. This was a good first step, offering both the industry and consumers many advantages, including lower costs to originate and store the loan documents and the convenience of electronic signatures for consumers. But in the end, we’re still dealing with static forms and that’s a problem.

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Topics: Technology

Enhancing the Mortgage Process with eDocuments

Posted by David Aach on May 17, 2016 9:00:00 AM

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As new regulations are constantly being introduced within the mortgage industry, today’s lenders are increasingly searching for new products and services to lessen the stress and strain of managing new changes. While adding in new technology may further confuse some, by employing the right approach, lenders can significantly mitigate the headache new regulations bring about by using electronic documents to simplify processes without incurring significantly higher expenses.

 

For nearly all lenders, the key to successfully implementing electronic documents lies in understanding the many benefits they can provide. Some loan officers see eDocuments as simply scanning in already existing paper mortgages and emailing them to the desired borrower. However, in a truly paperless institution, the documents never exist in paper form.

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Topics: Technology